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Friday, 14 December 2012

OPEC does not see increased US oil output as a threat

OPEC does not see increased U.S.
oil output as a threat to its interests but is skeptical about current
forecasts on the boom of American shale oil production.

OPEC Secretary General Abdullah Al-Badri also
said that figures supplied by Iran show it
producing around 3.7 million barrels a day. That is the same amount as Tehran pumped before international embargos on its
crude that took effect this year and is estimated to have cost it hundreds of
thousands of barrels a day in sales.

Al-Badri spoke to reporters a day after OPEC
ministers agreed to keep their daily crude production target unchanged
at 30 million barrels. They also extended his term for a year after failing to
agree on a successor for the post because of rivalries among Saudi Arabia, Iran
and Iraq, which nominated candidates.

OPEC, which accounts for about a third of the world's oil production, is
projecting a slight fall in demand for its crude next year, and world
inventories are well stocked, in part because of resurgent production by the
United State, which is tapping into oil extraction
from shale.